November 29, 2008

NOT THAT THEY CAN KEEP IT THAT HIGH:

OPEC To Defer New Oil Cut As Divisions Emerge: Leading producer Saudi Arabia wants to be sure that others in the 12-member cartel are sharing the burden of reductions. (Javno, 11/28/08)

OPEC on Saturday deferred a decision on a new supply cut amid signs that Saudi Arabia and its Gulf allies are demanding tighter adherence to restraints agreed in the past two months.

Gulf ministers said they wanted to see strict compliance with two recent output curbs before considering further cuts when the Organization of the Petroleum Exporting Countries meets next in Algeria on Dec. 17.

"Compliance I think is OK," said Kuwaiti Oil Minister Mohammad al-Olaim. "But the market conditions require us to be 100 percent compliant."

While OPEC's first priority is to put a floor under a near-$100 collapse in oil prices to $55, Saudi Arabia for the first time in years identified a "fair" price -- $75 a barrel.

"There is a good logic for $75 a barrel," said Saudi Oil Minister Ali al-Naimi.

"You know why?"


Because they can withstand it more easily than Iran?

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Posted by Orrin Judd at November 29, 2008 10:39 AM
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